Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Axos Financial, Inc. | d8k.htm |
| EX-99.1 - PRESS RELEASE - Axos Financial, Inc. | dex991.htm |
EXHIBIT 99.2
BofI HOLDING, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)
| June 30, | ||||||||
| 2011 | 2010 | |||||||
| ASSETS |
||||||||
| Cash and due from banks |
$ | 5,820 | $ | 5,834 | ||||
| Federal funds sold |
3,232 | 12,371 | ||||||
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|
|
|
|
|||||
| Total cash and cash equivalents |
9,052 | 18,205 | ||||||
| Securities: |
||||||||
| Trading |
5,053 | 4,402 | ||||||
| Available for sale |
145,671 | 242,430 | ||||||
| Held to maturity (fair value $387,286 in 2011, $326,867 in 2010) |
370,626 | 320,807 | ||||||
| Stock of the Federal Home Loan Bank, at cost |
15,463 | 18,148 | ||||||
| Loans held for sale, carried at fair value at June 30, 2011 |
20,110 | 5,511 | ||||||
| Loans - net of allowance for loan losses of $7,419 in 2011; $5,893 in 2010 |
1,325,101 | 774,899 | ||||||
| Accrued interest receivable |
6,577 | 5,040 | ||||||
| Furniture, equipment and software - net |
3,153 | 621 | ||||||
| Deferred income tax |
10,934 | 6,153 | ||||||
| Cash surrender value of life insurance |
5,087 | 4,911 | ||||||
| Other real estate owned and reposessed vehicles |
9,604 | 2,701 | ||||||
| Other assets |
13,656 | 17,253 | ||||||
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|||||
| TOTAL |
$ | 1,940,087 | $ | 1,421,081 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Deposits: |
||||||||
| Non-interest bearing |
$ | 7,369 | $ | 5,441 | ||||
| Interest bearing |
1,332,956 | 962,739 | ||||||
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|
|||||
| Total deposits |
1,340,325 | 968,180 | ||||||
| Securities sold under agreements to repurchase |
130,000 | 130,000 | ||||||
| Advances from the Federal Home Loan Bank |
305,000 | 182,999 | ||||||
| Junior subordinated debt and other borrowings |
7,655 | 5,155 | ||||||
| Accrued interest payable |
2,237 | 1,979 | ||||||
| Accounts payable and accrued liabilities |
7,104 | 2,960 | ||||||
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|
|||||
| Total liabilities |
1,792,321 | 1,291,273 | ||||||
| COMMITMENTS AND CONTINGENCIES (Note 14) |
||||||||
| STOCKHOLDERS’ EQUITY: |
||||||||
| Preferred stock - 1,000,000 shares authorized; |
||||||||
| Series A - $10,000 stated value; 515 (2011) and 515 (2010) shares issued and outstanding |
5,063 | 5,063 | ||||||
| Common stock - $0.01 par value; 25,000,000 shares authorized; 11,151,963 shares issued and 10,436,332 shares outstanding (2011); 10,827,673 shares issued and 10,184,975 shares outstanding (2010) |
112 | 108 | ||||||
| Additional paid-in capital |
88,343 | 84,605 | ||||||
| Accumulated other comprehensive income (loss) - net of tax |
(971 | ) | 4,043 | |||||
| Retained earnings |
60,152 | 39,882 | ||||||
| Treasury stock, at cost; 715,631 shares and 642,698 shares, respectively |
(4,933 | ) | (3,893 | ) | ||||
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|||||
| Total stockholders’ equity |
147,766 | 129,808 | ||||||
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| TOTAL |
$ | 1,940,087 | $ | 1,421,081 | ||||
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|||||
BofI HOLDING, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except earnings per share)
(Unaudited)
| Year Ended June 30, | ||||||||||||
| 2011 | 2010 | 2009 | ||||||||||
| INTEREST AND DIVIDEND INCOME: |
||||||||||||
| Loans, including fees |
$ | 60,508 | $ | 43,697 | $ | 41,782 | ||||||
| Investments |
32,427 | 41,875 | 35,996 | |||||||||
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|
|||||||
| Total interest and dividend income |
92,935 | 85,572 | 77,778 | |||||||||
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|||||||
| INTEREST EXPENSE: |
||||||||||||
| Deposits |
22,276 | 21,254 | 23,983 | |||||||||
| Advances from the Federal Home Loan Bank |
6,263 | 7,725 | 11,385 | |||||||||
| Other borrowings |
5,883 | 5,974 | 6,051 | |||||||||
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|
|||||||
| Total interest expense |
34,422 | 34,953 | 41,419 | |||||||||
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|
|||||||
| Net interest income |
58,513 | 50,619 | 36,359 | |||||||||
| Provision for loan losses |
5,800 | 5,775 | 4,730 | |||||||||
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|||||||
| Net interest income, after provision for loan losses |
52,713 | 44,844 | 31,629 | |||||||||
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| NON-INTEREST INCOME: |
||||||||||||
| Realized gain (loss) on securities: |
||||||||||||
| Sale of FNMA preferred stock |
— | — | (7,902 | ) | ||||||||
| Sale of mortgage-backed securities |
2,420 | 13,037 | 2,816 | |||||||||
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|||||||
| Total realized gain (loss) on securities |
2,420 | 13,037 | (5,086 | ) | ||||||||
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| Other-than-temporary loss on securities: |
||||||||||||
| Total impairment losses |
(5,942 | ) | (6,910 | ) | (13,831 | ) | ||||||
| Loss recognized in other comprehensive loss |
4,401 | 872 | 12,377 | |||||||||
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| Net impairment loss recognized in earnings |
(1,541 | ) | (6,038 | ) | (1,454 | ) | ||||||
| Fair value gain (loss) on trading securities |
651 | (1,039 | ) | (2,055 | ) | |||||||
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| Total unrealized loss on securities |
(890 | ) | (7,077 | ) | (3,509 | ) | ||||||
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|||||||
| Prepayment penalty fee income |
1,073 | 122 | 64 | |||||||||
| Mortgage banking income |
4,731 | 1,694 | 1,381 | |||||||||
| Banking service fees and other income |
659 | 540 | 463 | |||||||||
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| Total non-interest income (loss) |
7,993 | 8,316 | (6,687 | ) | ||||||||
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| NON-INTEREST EXPENSE: |
||||||||||||
| Salaries, employee benefits and stock-based compensation |
14,524 | 7,371 | 5,579 | |||||||||
| Professional services |
2,108 | 1,519 | 1,419 | |||||||||
| Occupancy and equipment |
834 | 419 | 442 | |||||||||
| Data processing and internet |
983 | 891 | 796 | |||||||||
| Advertising and promotional |
1,025 | 444 | 560 | |||||||||
| Depreciation and amortization |
618 | 235 | 171 | |||||||||
| Real estate owned and repossessed vehicles |
1,554 | 2,661 | 667 | |||||||||
| FDIC and OTS regulatory fees |
2,017 | 1,562 | 1,658 | |||||||||
| Other general and administrative |
2,871 | 2,181 | 1,602 | |||||||||
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| Total non-interest expense |
26,534 | 17,283 | 12,894 | |||||||||
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| INCOME BEFORE INCOME TAXES |
34,172 | 35,877 | 12,048 | |||||||||
| INCOME TAXES |
13,593 | 14,749 | 4,906 | |||||||||
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| NET INCOME |
$ | 20,579 | $ | 21,128 | $ | 7,142 | ||||||
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| NET INCOME ATTRIBUTABLE TO COMMON STOCK |
$ | 20,270 | $ | 20,517 | $ | 6,452 | ||||||
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|||||||
| Basic earnings per share |
$ | 1.88 | $ | 2.31 | $ | 0.78 | ||||||
| Diluted earnings per share |
$ | 1.87 | $ | 2.22 | $ | 0.77 | ||||||
BofI HOLDING, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except earnings per share)
(Unaudited)
| For the Quarter Ended June 30, | ||||||||
| 2011 | 2010 | |||||||
| INTEREST AND DIVIDEND INCOME: |
||||||||
| Loans, including fees |
$ | 17,609 | $ | 11,849 | ||||
| Investments |
7,725 | 8,873 | ||||||
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| Total interest and dividend income |
25,334 | 20,722 | ||||||
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| INTEREST EXPENSE: |
||||||||
| Deposits |
6,018 | 5,094 | ||||||
| Advances from the Federal Home Loan Bank |
1,435 | 1,692 | ||||||
| Other borrowings |
1,466 | 1,467 | ||||||
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| Total interest expense |
8,919 | 8,253 | ||||||
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| Net interest income |
16,415 | 12,469 | ||||||
| Provision for loan losses |
1,450 | 925 | ||||||
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| Net interest income, after provision for loan losses |
14,965 | 11,544 | ||||||
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| NON-INTEREST INCOME: |
||||||||
| Realized gain (loss) on securities: |
||||||||
| Sale of FNMA preferred stock |
— | — | ||||||
| Sale of mortgage-backed securities |
460 | 544 | ||||||
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| Total realized gain (loss) on securities |
460 | 544 | ||||||
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| Other-than-temporary loss on securities: |
||||||||
| Total impairment losses |
(1,209 | ) | (108 | ) | ||||
| Loss recognized in other comprehensive loss |
723 | 43 | ||||||
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| Net impairment loss recognized in earnings |
(486 | ) | (65 | ) | ||||
| Fair value gain (loss) on trading securities |
584 | (14 | ) | |||||
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|||||
| Total unrealized loss on securities |
98 | (79 | ) | |||||
| Prepayment penalty fee income |
48 | 36 | ||||||
| Mortgage banking income |
1,101 | 246 | ||||||
| Banking service fees and other income |
313 | 152 | ||||||
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|
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| Total non-interest income (loss) |
2,020 | 899 | ||||||
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| NON-INTEREST EXPENSE: |
||||||||
| Salaries, employee benefits and stock-based compensation |
4,284 | 2,327 | ||||||
| Professional services |
564 | 303 | ||||||
| Occupancy and equipment |
228 | 121 | ||||||
| Data processing and internet |
290 | 252 | ||||||
| Advertising and promotional |
433 | 150 | ||||||
| Depreciation and amortization |
254 | 65 | ||||||
| Real estate owned and repossessed vehicles |
306 | 640 | ||||||
| FDIC and OTS regulatory fees |
543 | 341 | ||||||
| Other general and administrative |
764 | 610 | ||||||
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| Total non-interest expense |
7,666 | 4,809 | ||||||
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| INCOME BEFORE INCOME TAXES |
9,319 | 7,634 | ||||||
| INCOME TAXES |
3,774 | 2,937 | ||||||
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| NET INCOME |
$ | 5,545 | $ | 4,697 | ||||
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| Diluted earnings per share |
$ | 0.50 | $ | 0.44 | ||||
BofI HOLDING, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME
(Dollars in thousands)
| Convertible Preferred Stock |
Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | Shares | Amount | Issued | Treasury | Outstanding | Amount | Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss), Net of Income Tax |
Treasury Stock |
Comprehensive Income |
Total | ||||||||||||||||||||||||||||||||||||
| BALANCE—June 30, 2008 |
4,265 | $ | 8,813 | 8,627,840 | (328,277 | ) | 8,299,563 | $ | 86 | $ | 60,684 | $ | 14,975 | $ | 1,017 | $ | (2,493 | ) | $ | 83,082 | ||||||||||||||||||||||||||||
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| Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Net income |
— | — | — | — | — | — | — | 7,142 | — | — | $ | 7,142 | 7,142 | |||||||||||||||||||||||||||||||||||
| Net unrealized gain from investment securities—net of income tax expense |
— | — | — | — | — | — | — | — | 909 | — | 909 | 909 | ||||||||||||||||||||||||||||||||||||
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| Total comprehensive income |
$ | 8,051 | ||||||||||||||||||||||||||||||||||||||||||||||
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| Cash dividends on preferred stock |
— | — | — | — | — | — | — | (690 | ) | — | — | (690 | ) | |||||||||||||||||||||||||||||||||||
| Issuance of convertible preferred stock |
1,040 | 1,017 | — | — | — | — | — | — | — | — | 1,017 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | — | — | — | — | — | 651 | — | — | — | 651 | |||||||||||||||||||||||||||||||||||||
| Restricted stock grants |
— | — | 50,300 | (13,741 | ) | 36,559 | 1 | — | — | — | (82 | ) | (81 | ) | ||||||||||||||||||||||||||||||||||
| Purchase of Treasury Stock |
— | — | — | (276,200 | ) | (276,200 | ) | — | — | — | — | (982 | ) | (982 | ) | |||||||||||||||||||||||||||||||||
| Cumulative effect of the adoption of SFAS 159 |
— | — | — | — | — | — | — | (2,062 | ) | — | — | (2,062 | ) | |||||||||||||||||||||||||||||||||||
| Stock option exercises and tax benefits of equity compensation |
— | — | 27,935 | (5,089 | ) | 22,846 | — | (15 | ) | — | — | (32 | ) | (47 | ) | |||||||||||||||||||||||||||||||||
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| BALANCE—June 30, 2009 |
5,305 | $ | 9,830 | 8,706,075 | (623,307 | ) | 8,082,768 | $ | 87 | $ | 61,320 | $ | 19,365 | $ | 1,926 | $ | (3,589 | ) | $ | 88,939 | ||||||||||||||||||||||||||||
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| Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Net income |
— | — | — | — | — | — | — | 21,128 | — | — | $ | 21,128 | 21,128 | |||||||||||||||||||||||||||||||||||
| Net unrealized gain from investment securities—net of income tax expense |
— | — | — | — | — | — | — | — | 2,117 | — | 2,117 | 2,117 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income |
— | — | — | — | — | — | — | — | — | — | $ | 23,245 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends on preferred stock |
— | — | — | — | — | — | — | (611 | ) | — | — | (611 | ) | |||||||||||||||||||||||||||||||||||
| Issuance of common stock |
— | — | 1,226,276 | — | 1,226,276 | 12 | 15,082 | — | — | — | 15,094 | |||||||||||||||||||||||||||||||||||||
| Convert preferred stock to common stock |
(4,790 | ) | (4,767 | ) | 531,690 | — | 531,690 | 6 | 4,761 | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | — | — | — | — | — | 866 | — | — | — | 866 | |||||||||||||||||||||||||||||||||||||
| Restricted stock grants |
— | — | 56,575 | (17,328 | ) | 39,247 | — | 181 | — | — | (289 | ) | (108 | ) | ||||||||||||||||||||||||||||||||||
| Stock option exercises and tax benefits of equity compensation |
— | — | 307,057 | (2,063 | ) | 304,994 | 3 | 2,395 | — | — | (15 | ) | 2,383 | |||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
| BALANCE—June 30, 2010 |
515 | $ | 5,063 | 10,827,673 | (642,698 | ) | 10,184,975 | $ | 108 | $ | 84,605 | $ | 39,882 | $ | 4,043 | $ | (3,893 | ) | $ | 129,808 | ||||||||||||||||||||||||||||
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| Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Net income |
— | — | — | — | — | — | — | 20,579 | — | — | $ | 20,579 | 20,579 | |||||||||||||||||||||||||||||||||||
| Net unrealized loss from investment securities—net of income tax expense |
— | — | — | — | — | — | — | — | (5,014 | ) | — | (5,014 | ) | (5,014 | ) | |||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income |
— | — | — | — | — | — | — | — | — | — | $ | 15,565 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends on preferred stock |
— | — | — | — | — | — | — | (309 | ) | — | — | (309 | ) | |||||||||||||||||||||||||||||||||||
| Issuance of common stock |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Convert preferred stock to common stock |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense |
— | — | — | — | — | — | 2,153 | — | — | — | 2,153 | |||||||||||||||||||||||||||||||||||||
| Restricted stock grants |
— | — | 195,909 | (72,933 | ) | 122,976 | 3 | 314 | — | — | (1,040 | ) | (723 | ) | ||||||||||||||||||||||||||||||||||
| Stock option exercises and tax benefits of equity compensation |
— | — | 128,381 | — | 128,381 | 1 | 1,271 | — | — | — | 1,272 | |||||||||||||||||||||||||||||||||||||
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| BALANCE—June 30, 2011 |
515 | $ | 5,063 | 11,151,963 | (715,631 | ) | 10,436,332 | $ | 112 | $ | 88,343 | $ | 60,152 | $ | (971 | ) | $ | (4,933 | ) | $ | 147,766 | |||||||||||||||||||||||||||
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BofI HOLDING, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
| Year Ended June 30, | ||||||||||||
| 2011 | 2010 | 2009 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
| Net income |
$ | 20,579 | $ | 21,128 | $ | 7,142 | ||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||||||
| Accretion of discounts on securities |
(16,651 | ) | (24,062 | ) | (13,741 | ) | ||||||
| Amortization (accretion) of premiums (discounts) on loans |
(3,861 | ) | (3,840 | ) | (1,906 | ) | ||||||
| Amortization of borrowing costs |
1 | 15 | 18 | |||||||||
| Stock-based compensation expense |
2,153 | 866 | 651 | |||||||||
| Net (gain) loss on sale of investment securities |
(2,420 | ) | (13,037 | ) | 5,086 | |||||||
| Valuation of financial instruments carried at fair value |
(651 | ) | 1,039 | 2,055 | ||||||||
| Impairment charge on securities held to maturity |
1,526 | 6,038 | 1,454 | |||||||||
| Provision for loan losses |
5,800 | 5,775 | 4,730 | |||||||||
| Deferred income taxes |
(1,435 | ) | (4,367 | ) | (1,459 | ) | ||||||
| Origination of loans held for sale |
(216,868 | ) | (114,842 | ) | (83,741 | ) | ||||||
| Unrealized gain on loans held for sale |
(350 | ) | — | — | ||||||||
| Gain on sales of loans held for sale |
(4,730 | ) | (1,694 | ) | (1,381 | ) | ||||||
| Proceeds from sale of loans held for sale |
207,349 | 114,215 | 81,932 | |||||||||
| Gain on sales of loans held for investment |
(222 | ) | — | — | ||||||||
| Depreciation and amortization of furniture, equipment and software |
618 | 235 | 171 | |||||||||
| Stock dividends from the Federal Home Loan Bank |
— | — | (464 | ) | ||||||||
| Net changes in assets and liabilities which provide (use) cash: |
||||||||||||
| Accrued interest receivable |
(1,537 | ) | 828 | (128 | ) | |||||||
| Other assets |
4,541 | (1,527 | ) | (7,541 | ) | |||||||
| Accrued interest payable |
258 | (129 | ) | (258 | ) | |||||||
| Accounts payable and accrued liabilities |
3,104 | (1,641 | ) | (2,782 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Net cash used in operating activities |
(2,796 | ) | (15,000 | ) | (10,162 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||
| Purchases of investment securities |
(284,034 | ) | (223,754 | ) | (310,559 | ) | ||||||
| Proceeds from sales of mortgage-backed securities |
16,523 | 27,118 | 90,195 | |||||||||
| Proceeds from repayment of securities |
323,636 | 284,513 | 113,362 | |||||||||
| Purchase of stock of the Federal Home Loan Bank |
(66 | ) | — | (2,068 | ) | |||||||
| Proceeds from redemption of stock of the Federal Home Loan Bank |
2,751 | 700 | 3,079 | |||||||||
| Origination of loans |
(608,901 | ) | (74,702 | ) | (33,170 | ) | ||||||
| Proceeds from sales of repossessed assets |
3,484 | 6,650 | 3,124 | |||||||||
| Proceeds from sale of loans held for investment |
6,911 | — | — | |||||||||
| Purchases of loans, net of discounts and premiums |
(124,784 | ) | (185,812 | ) | (57,410 | ) | ||||||
| Principal repayments on loans |
163,348 | 93,788 | 94,744 | |||||||||
| Purchases of furniture, equipment and software |
(3,150 | ) | (420 | ) | (216 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net cash used in investing activities |
(504,282 | ) | (71,919 | ) | (98,919 | ) | ||||||
|
|
|
|
|
|
|
|||||||
BofI HOLDING, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
| Year Ended June 30, | ||||||||||||
| 2011 | 2010 | 2009 | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||
| Net increase in deposits |
$ | 372,145 | $ | 319,656 | $ | 77,820 | ||||||
| Proceeds from the Federal Home Loan Bank advances |
332,000 | 161,000 | 113,000 | |||||||||
| Repayment of the Federal Home Loan Bank advances |
(210,000 | ) | (241,000 | ) | (249,000 | ) | ||||||
| Proceeds from other borrowings |
2,500 | — | — | |||||||||
| Proceeds from borrowing at the Fed Discount Window |
— | 125,000 | 205,000 | |||||||||
| Repayment of borrowing at the Fed Discount Window |
— | (285,000 | ) | (45,000 | ) | |||||||
| Purchase of treasury stock |
— | — | (1,006 | ) | ||||||||
| Proceeds from exercise of common stock options |
922 | 1,790 | 1 | |||||||||
| Proceeds from issuance of convertible preferred stock - Series B |
— | — | 1,017 | |||||||||
| Proceeds from issuance of common stock |
4 | 15,094 | — | |||||||||
| Tax benefit from exercise of common stock options and vesting of restricted stock grants |
663 | 789 | (15 | ) | ||||||||
| Cash dividends on preferred stock |
(309 | ) | (611 | ) | (594 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net cash provided by financing activities |
497,925 | 96,718 | 101,223 | |||||||||
|
|
|
|
|
|
|
|||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS |
(9,153 | ) | 9,799 | (7,858 | ) | |||||||
| CASH AND CASH EQUIVALENTS—Beginning of year |
18,205 | 8,406 | 16,264 | |||||||||
|
|
|
|
|
|
|
|||||||
| CASH AND CASH EQUIVALENTS—End of year |
$ | 9,052 | $ | 18,205 | $ | 8,406 | ||||||
|
|
|
|
|
|
|
|||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
||||||||||||
| Interest paid on deposits and borrowed funds |
$ | 34,164 | $ | 35,066 | $ | 41,660 | ||||||
|
|
|
|
|
|
|
|||||||
| Income taxes paid |
$ | 13,697 | $ | 20,174 | $ | 6,737 | ||||||
|
|
|
|
|
|
|
|||||||
| Transfers to other real estate and repossessed vehicles |
$ | 11,746 | $ | 5,467 | $ | 8,962 | ||||||
|
|
|
|
|
|
|
|||||||
| Transfers from loans held for investment to loans held for sale |
$ | 6,911 | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
|||||||
| Adoption of fair value: securities transferred from HTM to trading |
$ | — | $ | — | $ | 11,055 | ||||||
|
|
|
|
|
|
|
|||||||
| Securities transferred from held-to-maturity to available for sale portfolio |
$ | — | $ | 1,245 | $ | — | ||||||
|
|
|
|
|
|
|
|||||||
| Preferred stock dividends declared but not paid |
$ | — | $ | — | $ | 96 | ||||||
|
|
|
|
|
|
|
|||||||
LOANS
The following table sets forth the composition of the loan portfolio as of the dates indicated :
| (Unaudited) | 2011 | 2010 | ||||||
| Mortgage loans on real estate: |
||||||||
| Residential single family (one to four units) |
$ | 517,636 | $ | 259,790 | ||||
| Home equity |
36,424 | 22,575 | ||||||
| Residential multifamily (five units or more) |
647,381 | 370,469 | ||||||
| Commercial and land |
37,985 | 33,553 | ||||||
| Consumer - Recreational vehicle |
30,407 | 39,842 | ||||||
| Other |
66,582 | 62,875 | ||||||
|
|
|
|
|
|||||
| Total |
1,336,415 | 789,104 | ||||||
| Allowance for loan losses |
(7,419 | ) | (5,893 | ) | ||||
| Unaccreted discounts and loan fees |
(3,895 | ) | (8,312 | ) | ||||
|
|
|
|
|
|||||
| Net mortgage loans on real estate |
$ | 1,325,101 | $ | 774,899 | ||||
|
|
|
|
|
|||||
INVESTMENT SECURITIES
The amortized costs, carrying amount and fair value for the major categories of investment securitites trading, available for sale, and held to maturity were:
| Trading | Available for sale | Held to maturity | ||||||||||||||||||||||||||||||||||
| Fair Value |
Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
Carrying Amount |
Unrecognized Gains |
Unrecognized Losses |
Fair Value |
||||||||||||||||||||||||||||
| (Unaudited) | June 30, 2011 | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities (RMBS) : |
||||||||||||||||||||||||||||||||||||
| U.S. agencies 1 |
$ | — | $ | 60,212 | $ | 1,707 | $ | — | $ | 61,919 | $ | 77,941 | $ | 2,317 | $ | (196 | ) | $ | 80,062 | |||||||||||||||||
| Non-agency 2 |
74,545 | 9,406 | (199 | ) | 83,752 | 246,455 | 15,851 | (2,625 | ) | 259,681 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total mortgage-backed securities |
— | 134,757 | 11,113 | (199 | ) | 145,671 | 324,396 | 18,168 | (2,821 | ) | 339,743 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Other debt securities: |
||||||||||||||||||||||||||||||||||||
| U.S. agencies 1 |
— | — | — | — | — | 9,976 | — | (149 | ) | 9,827 | ||||||||||||||||||||||||||
| Municipal |
— | — | — | — | — | 36,254 | 1,517 | (55 | ) | 37,716 | ||||||||||||||||||||||||||
| Non-agency |
5,053 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total other debt securities |
5,053 | — | — | — | — | 46,230 | 1,517 | (204 | ) | 47,543 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total debt securities |
$ | 5,053 | $ | 134,757 | $ | 11,113 | $ | (199 | ) | $ | 145,671 | $ | 370,626 | $ | 19,685 | $ | (3,025 | ) | $ | 387,286 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| June 30, 2010 | ||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities (RMBS) : |
||||||||||||||||||||||||||||||||||||
| U.S. agencies 1 |
$ | — | $ | 56,933 | $ | 1,346 | $ | — | $ | 58,279 | $ | 35,317 | $ | 528 | $ | (229 | ) | $ | 35,616 | |||||||||||||||||
| Non-agency 2 |
— | 109,659 | 13,527 | — | 123,186 | 285,490 | 16,222 | (10,461 | ) | 291,251 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total mortgage-backed securities |
— | 166,592 | 14,873 | — | 181,465 | 320,807 | 16,750 | (10,690 | ) | 326,867 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Other debt securities: |
||||||||||||||||||||||||||||||||||||
| U.S. agencies 1 |
— | 60,966 | 2 | (3 | ) | 60,965 | — | — | — | — | ||||||||||||||||||||||||||
| Non-agency |
4,402 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total other debt securities |
4,402 | 60,966 | 2 | (3 | ) | 60,965 | — | — | — | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total debt securities |
$ | 4,402 | $ | 227,558 | $ | 14,875 | $ | (3 | ) | $ | 242,430 | $ | 320,807 | $ | 16,750 | $ | (10,690 | ) | $ | 326,867 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| 1 | U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. |
| 2 | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages . Primarily supersenior securities secured by prime, Alt-A or pay-option ARM mortgages. |
DEPOSITS
Deposit accounts are summarized as follows:
| (Unaudited) | 2011 | 2010 | ||||||||||||||
| Amount | Rate* | Amount | Rate* | |||||||||||||
| Non-interest bearing |
$ | 7,369 | 0.00 | % | $ | 5,441 | 0.00 | % | ||||||||
| Interest bearing: |
||||||||||||||||
| Demand |
76,793 | 0.75 | % | 63,962 | 0.85 | % | ||||||||||
| Savings |
268,384 | 0.93 | % | 358,293 | 0.91 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Time deposits: |
||||||||||||||||
| Under $100 |
337,937 | 2.24 | % | 200,859 | 3.23 | % | ||||||||||
| $100 or more |
649,842 | 2.15 | % | 339,625 | 2.95 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Total time deposits |
987,779 | 2.18 | % | 540,484 | 3.05 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Total interest bearing |
1,332,956 | 1.85 | % | 962,739 | 2.11 | % | ||||||||||
|
|
|
|
|
|||||||||||||
| Total deposits |
$ | 1,340,325 | 1.84 | % | $ | 968,180 | 2.10 | % | ||||||||
|
|
|
|
|
|||||||||||||
| * | Based on weighted-average stated interest rates at end of period. |
The following table sets forth the number of deposit accounts by type at the date indicated:
| At June 30, | ||||||||||||||||||||
| (Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Checking and savings accounts |
16,105 | 17,192 | 10,685 | 9,415 | 8,315 | |||||||||||||||
| Time deposits |
16,793 | 10,554 | 12,757 | 15,490 | 17,502 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total number of deposit accounts |
32,898 | 27,746 | 23,442 | 24,905 | 25,817 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:
| For the Fiscal Years Ended June 30, | ||||||||||||||||||||||||||||||||||||
| (Unaudited) | 2011 | 2010 | 2009 | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
| Average Balance1 |
Interest Income / Expense |
Average Yields Earned / Rates Paid |
Average Balance1 |
Interest Income / Expense |
Average Yields Earned / Rates Paid |
Average Balance1 |
Interest Income / Expense |
Average Yields Earned / Rates Paid |
||||||||||||||||||||||||||||
| Assets: |
||||||||||||||||||||||||||||||||||||
| Loans 2, 3 |
$ | 1,013,645 | $ | 60,508 | 5.97 | % | $ | 670,013 | $ | 43,697 | 6.52 | % | $ | 635,780 | $ | 41,782 | 6.57 | % | ||||||||||||||||||
| Federal funds sold |
8,407 | 11 | 0.13 | % | 23,529 | 31 | 0.13 | % | 4,008 | 34 | 0.85 | % | ||||||||||||||||||||||||
| Interest-earning deposits in other financial institutions |
384 | — | 0.00 | % | 232 | — | 0.00 | % | 442 | 15 | 3.39 | % | ||||||||||||||||||||||||
| Mortgage-backed and other investment securities 4 |
556,518 | 32,353 | 5.81 | % | 609,697 | 41,780 | 6.85 | % | 535,918 | 35,753 | 6.67 | % | ||||||||||||||||||||||||
| Stock of the FHLB, at cost |
16,845 | 63 | 0.37 | % | 18,756 | 64 | 0.34 | % | 19,036 | 194 | 1.02 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total interest-earning assets |
1,595,799 | 92,935 | 5.82 | % | 1,322,227 | 85,572 | 6.47 | % | 1,195,184 | 77,778 | 6.51 | % | ||||||||||||||||||||||||
| Noninterest-earning assets |
38,741 | 30,133 | 24,930 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Total assets |
$ | 1,634,540 | $ | 1,352,360 | $ | 1,220,114 | ||||||||||||||||||||||||||||||
| Liabilities and Stockholders’ Equity: |
||||||||||||||||||||||||||||||||||||
| Interest-bearing demand and savings |
$ | 344,964 | $ | 3,015 | 0.87 | % | $ | 447,305 | $ | 6,374 | 1.42 | % | $ | 186,309 | $ | 4,583 | 2.46 | % | ||||||||||||||||||
| Time deposits |
776,638 | 19,261 | 2.48 | % | 413,999 | 14,880 | 3.59 | % | 433,410 | 19,400 | 4.48 | % | ||||||||||||||||||||||||
| Securities sold under agreements to repurchase |
130,000 | 5,736 | 4.41 | % | 130,000 | 5,726 | 4.40 | % | 130,000 | 5,677 | 4.37 | % | ||||||||||||||||||||||||
| Advances from the FHLB |
226,005 | 6,263 | 2.77 | % | 199,288 | 7,725 | 3.88 | % | 333,327 | 11,385 | 3.42 | % | ||||||||||||||||||||||||
| Other borrowings |
5,167 | 147 | 2.84 | % | 44,141 | 248 | 0.56 | % | 43,679 | 374 | 0.86 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total interest-bearing liabilities |
1,482,774 | 34,422 | 2.32 | % | 1,234,733 | 34,953 | 2.83 | % | 1,126,725 | 41,419 | 3.68 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits |
5,813 | 5,533 | 4,170 | |||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities |
7,230 | 6,362 | 6,014 | |||||||||||||||||||||||||||||||||
| Stockholders’ equity |
138,723 | 105,732 | 83,205 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 1,634,540 | $ | 1,352,360 | $ | 1,220,114 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Net interest income |
$ | 58,513 | $ | 50,619 | $ | 36,359 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Interest rate spread 5 |
3.50 | % | 3.64 | % | 2.83 | % | ||||||||||||||||||||||||||||||
| Net interest margin 6 |
3.67 | % | 3.83 | % | 3.04 | % | ||||||||||||||||||||||||||||||
| 1 | Average balances are obtained from daily data. |
| 2 | Loans include loans held for sale, loan premiums and unearned fees. |
| 3 | Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant. |
| 4 | Includes $5.5 million of investment securities which are taxed at a reduced rate. |
| 5 | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities. |
| 6 | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID
The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:
| For the Three Months Ended June 30, | ||||||||||||||||||||||||
| (Unaudited) | 2011 | 2010 | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Average Balance1 |
Interest Income / Expense |
Average Yields Earned / Rates Paid2 |
Average Balance1 |
Interest Income / Expense |
Average Yields Earned / Rates Paid2 |
|||||||||||||||||||
| Assets: |
||||||||||||||||||||||||
| Loans 2, 3 |
$ | 1,217,496 | $ | 17,609 | 5.78 | % | $ | 744,457 | $ | 11,849 | 6.37 | % | ||||||||||||
| Federal funds sold |
6,064 | 2 | 0.13 | % | 30,135 | 9 | 0.12 | % | ||||||||||||||||
| Interest-earning deposits in other financial institutions |
315 | — | 0.00 | % | 109 | — | 0.00 | % | ||||||||||||||||
| Mortgage-backed and other investment securities 4 |
541,308 | 7,710 | 5.70 | % | 581,401 | 8,852 | 6.09 | % | ||||||||||||||||
| Stock of the FHLB, at cost |
15,750 | 13 | 0.33 | % | 18,480 | 12 | 0.26 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-earning assets |
1,780,933 | 25,334 | 5.69 | % | 1,374,582 | 20,722 | 6.03 | % | ||||||||||||||||
| Noninterest-earning assets |
48,373 | 37,691 | ||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
| Total assets |
$ | 1,829,306 | $ | 1,412,273 | ||||||||||||||||||||
| Liabilities and Stockholders’ Equity: |
||||||||||||||||||||||||
| Interest-bearing demand and savings |
$ | 333,024 | $ | 767 | 0.92 | % | $ | 510,953 | $ | 1,349 | 1.06 | % | ||||||||||||
| Time deposits |
944,485 | 5,251 | 2.22 | % | 459,806 | 3,745 | 3.26 | % | ||||||||||||||||
| Securities sold under agreements to repurchase |
130,000 | 1,430 | 4.40 | % | 130,000 | 1,430 | 4.40 | % | ||||||||||||||||
| Advances from the FHLB |
258,549 | 1,435 | 2.22 | % | 167,641 | 1,692 | 4.04 | % | ||||||||||||||||
| Other borrowings |
5,188 | 36 | 2.78 | % | 5,297 | 37 | 2.79 | % | ||||||||||||||||
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| Total interest-bearing liabilities |
1,671,246 | 8,919 | 2.13 | % | 1,273,697 | 8,253 | 2.59 | % | ||||||||||||||||
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| Noninterest-bearing demand deposits |
5,207 | 7,189 | ||||||||||||||||||||||
| Other noninterest-bearing liabilities |
7,338 | 6,068 | ||||||||||||||||||||||
| Stockholders’ equity |
145,515 | 125,319 | ||||||||||||||||||||||
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| Total liabilities and stockholders’ equity |
$ | 1,829,306 | $ | 1,412,273 | ||||||||||||||||||||
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| Net interest income |
$ | 16,415 | $ | 12,469 | ||||||||||||||||||||
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| Interest rate spread 6 |
3.56 | % | 3.44 | % | ||||||||||||||||||||
| Net interest margin 7 |
3.69 | % | 3.63 | % | ||||||||||||||||||||
| 1 | Average balances are obtained from daily data. |
| 2 | Annualized rates. |
| 3 | Loans include loans held for sale, loan premiums and unearned fees. |
| 4 | Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant. |
| 5 | Includes $5.5 million of investment securities which are taxed at a reduced rate. |
| 6 | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities. |
| 7 | Net interest margin represents net interest income as a percentage of average interest-earning assets. |